Nio forms Beijing unit to develop EVs, components

Nio forms Beijing unit to develop EVs, components

Shanghai electric vehicle startup Nio formed a 7 billion yuan ($1 billion) subsidiary in the Chinese capital of Beijing as it moves closer to producing EVs in Beijing with a local investment company.

The subsidiary will develop electrified vehicles and related components as well as oversee sales of vehicles and components.

In June, Nio confirmed that it was considering construction of a vehicle assembly plant in Beijing with Beijing E-town International Investment, a local state-owned investment company that pledged to invest 10 billion yuan in the factory.

Nio, incorporated in Shanghai in 2014, has its EVs produced at Jianghuai Automobile Co. in the east China city of Hefei under a contract agreement.

On June 18, the company launched sales of its second product, the ES6 five-seat electric crossover. Its first product, the ES8 seven-seat crossover, went on sale a year ago. In June, Nio delivered 1,340 vehicles: 927 ES8s and 413 ES6s.